Accounting Grade 10 Exemplar Year-end Question Paper
GRADE 10
ACCOUNTING
YEAR-END EXEMPLAR EXAMINATION PAPER: 2006
SUGGESTED MEMORANDUM
• Traditional memo
• Rubrics
Accounting Grade 10 Exemplar Year-end Question Paper
MEMO TO QUESTION 1:
1.1
Purpose
e.g.
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
Name of
document
Petty Cash
voucher
This document records payments made out of petty
cash
This document is used to record money received
from a customer for a cash sale of stock to him
This document is used to record a credit sale to a
customer
This document is used to deposit money into the
bank account of the business
This document is used to pay a supplier for an
amount owed to him, using money in the business’
bank account
This document is used to record stock returned by a
credit customer
This document is received from a creditor for goods
bought on credit by the business
This document is used to put through various
entries in the General Journal e.g. write off bad
debts
Cash slip üü
Invoice üü
Deposit slip ü
Cheque üü
Credit note üü
Invoice üü
Journal voucher
üü
Debit note üü
This document is used to return goods to a creditor
15
1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
(a)
X
(b)
(c)
(d)
X
X
X
X
üüü
üüü
üüü
üüü
üüü
15
Accounting Grade 10 Exemplar Year-end Question Paper
1.3.1 Three main points to solve the debtors problem
•
•
•
•
•
•
•
Proper screening of debtors before opening accounts
Signing of invoices by customers
Statements sent out on time
Letters of demand for those who are late in paying
Incentives for early payment
No sales to overdue debtors
Charge interest on overdue accounts
Any three points provided they are valid and essential üü üü üü
(Allocate part marks if points are valid but not essential)
1.3.2 Two main points to solve the stock problem
•
•
•
•
•
•
Check books delivered to the shop – check to invoice
Regular stock counts – check to Trading stock account
Layout of books carefully designed e.g. magazines near desk,
valuable books secured
Security tags on books
Store inspectors / security guards at doors – check to sales slip
Background checks on employees
Any two points provided they are valid and essential: üü üü
(Allocate part marks if points are valid but not essential)
10
Marks
40
Accounting Grade 10 Exemplar Year-end Question Paper
MEMO TO QUESTION 2:
2.1
Calculate the profit that Mary made in January 2006.
üü
ü
ü
R3 200 – R2 160 = R1 040
(4)
2.2
Calculate the cost per cake produced in January 2006.
ü
ü
ü
R2 160 / 40 = R54
(3)
2.3
Example of a Direct cost: Ingredients ü
Example of an Indirect cost: Wages / Rent etc ü
(2)
2.4
Mary thinks that if she increases her production by 50% then her
profit will also increase by 50%. Is she correct? Explain briefly.
Her husband is correct. ü
Economies of scale. Fixed costs will not change.üü
(3)
Accounting Grade 10 Exemplar Year-end Question Paper
2.5
Calculation of profit of making and selling 80 cakes:
Cost of producing 80 cakes
TOTAL
Fixed costs
800,00
Fixed costs remain fixed
üü
-
Rent of kitchen & equipment
500,00
-
Wages paid to assistant
300,00
Variable costs
2 720,00
Variable costs will double
üüüü
-
Ingredients
1200.00
-
Electricity & water
320,00
-
Packaging for cakes
80,00
-
Motor vehicle delivery costs
880,00
-
Telephone calls
240,00
R 3 520,00
2.6
Sales = 80 x R80 = R6 400 üü
Costs = R3 520 þ
Profit = R2 880 þ
Opinion on Mary’s involvement in the local fund-raising day.
Workings (not essential):
Extra profit = New sales – Extra fixed costs – Extra variable costs
Accounting Grade 10 Exemplar Year-end Question Paper
(10)
= R2600 – R1000
– (R40 x R34 = R1360)
= R240
Contribution per unit = R65 – R34 = R31
Total contribution = R31 x 40 cakes = R1 240
Extra fixed costs = R600 + R400 = R1 000
Extra profit = R240
Possible Answers:
Yes (if she feels that the additional R240 is worth it) OR
No (if she feels the amount is insignificant in comparison to what
she normally earns for the same number of cakes made or that
her assistant is earning more than she is.
0-2 marks
3-4 marks
5-6 marks
7-8 marks
Poor or no
motivation
provided for the
opinion given.
Satisfactory
motivation
provided for the
opinion given
considering two
of the following
factors: FC, VC,
revenue and
effect on profit.
Good motivation
provided for the
opinion given
considering
factors of FC,
VC, revenue and
effect on profit.
Convincing
motivation
provided for the
opinion given
considering
factors of FC,
VC, revenue and
effect on profit.
Marks
30
Accounting Grade 10 Exemplar Year-end Question Paper
(8)
SOLUTION TO QUESTION 3
3.1 PEGGY PERUMAL TRADING AS ‘PEGGY’S FASHIONS’
INCOME STATEMENT FOR THE YEAR ENDING 28 FEBRUARY 2005
Sales
600 000 PP
599 200
Cost of sales
(350 000)
R
Gross profit
249 200
R
Add: Other operating income
18 500
Commission income
15 000 PP
16 500
Discount received
2 000
Less: Operating expenses
Salaries & wages
Telephone
Advertising
Rent expense
Motor vehicle expenses
Stationery & printing
Bank charges
Trading stock deficit
Bad debts
Operating profit
Add: Interest income
Less: Interest expense
Net profit
267 700
(170 000)
80 000
5 000
4 000
44 000
23 000
1 000
3 000
5 800
500
R
PP
PP
3 400
48 000
PP
PP
PP
3 300
R
97 200
PP
2 000
R
99 760
PP
(11 000)
87 760 PR
25
Accounting Grade 10 Exemplar Year-end Question Paper
2 060
13 000
3.2
PEGGY PERUMAL TRADING AS PEGGY’S FASHIONS
BALANCE SHEET AS AT 28 FEBRUARY 2005
ASSETS
Non-current assets
Fixed assets 170 000 P + 29000 P + 8000 P
Financial assets 60000 P – 30000 P
Current assets
P Inventories 180000 P – 4200 P – 5800 P
237 000 R
207 000 P
30 000 P
251 560 R
170 000 P
P Trade & other receivables 24000 P – 800 P – 500 P + 1500 P + 600 P
24 800 P
P Cash & cash equivalents 26000 P + 1000 P + 30000 P – 300 P + 60 P
56 760 P
TOTAL ASSETS
488 560 R
OWNER’S EQUITY & LIABILITIES
Owner’s equity 300000 P – 44000 P – 4200 P + 86760 PR
Non-current liabilities
P Loan from Credfin 100000 P – 20000 P
Current liabilities
P Trade & other payables 35100 P + 900 P + 8000 P + 2000 P
+ 20000 P + 4000 P
TOTAL EQUITY & LIABILITIES
338 560 P
80 000 R
80 000 P
70 000 R
70 000 P
488 560 R
50
Accounting Grade 10 Exemplar Year-end Question Paper
3.3.1
In your opinion, is it necessary for accountants to follow a set of
rules or principles when they prepare financial statements?
Explain briefly.
Possible answers (other valid answers acceptable):
• Reliability
• Comparability
• Understandability
3.3.2
Briefly explain the ‘Historical Cost Rule’ and why it is necessary
to use this rule / principle.
Possible answers (other valid answers acceptable):
• Assets recorded at original cost (explanation)
• Avoids manipulation of figures (reason)
3.3.3
Briefly explain the ‘Matching Principle’ and why it is necessary
to use this rule / principle.
Possible answers (other valid answers acceptable):
• Revenue items matched to correct time period or income
matched against the expense incurred to generate the
income (explanation)
• Enables one time period to be compare to another
(reason)
3.3.4
Briefly describe what is meant by:
Possible answers (other valid answers acceptable):
- Assets: Items of lasting value owned by a business OR
items owned by a business to generate income
-
Liabililties: Amounts owed to other persons or
organisations
-
Owner’s equity: The net worth of a business OR he
amount to which the owner is entitled
-
Gross profit: Profit made by a trader in the process of
buying and selling goods
-
Net profit: All income less all expenses OR he amount
by which the net worth of a business increases over an
accounting period
Accounting Grade 10 Exemplar Year-end Question Paper
RUBRIC TO QUESTION 3.3:
CONCEPTS
Inadequate
0
Partial
1
Adequate
2
Satisfactory
3
Meritorious
4
Outstanding
5
3.3.1
General need for
GAAP identified
and explained –
understandability,
comparability
No idea of
need for
GAAP
Little
idea of
need for
GAAP
Some idea of
need for
GAAP, not
well explained
Good idea of
need for
GAAP but not
well explained
Good idea of
need for
GAAP and
reasonably
well explained
Need for
GAAP well
identified and
clearly
explained
3.3.2
Historical cost
rule – reliability of
information
No idea of
the rule
evident
Little
idea of
the rule
evident
Rule is
defined but no
understanding
of need
Rule is
defined and
some
understanding
of need
Well defined
& good
understanding
of need for
reliability
3.3.3
Matching
Principle –
comparability of
information
No idea of
the rule
evident
Little
idea of
the rule
evident
Rule is
defined but no
understanding
of need
Rule is
defined and
some
understanding
of need
Well defined
& good
understanding
of need for
comparability
3.3.4
Definitions of
accounting
concepts
No
concepts
correctly
defined
One
concept
correctly
defined
Two concepts
correctly
defined
Three
concepts
correctly
defined
Four concepts
correctly
defined
Excellently
defined &
clear
understanding
of need for
reliability
Excellently
defined &
clear
understanding
of need for
comparability
All five
concepts
correctly
defined
Weight
Max
X1
X1
X1
x2
25
Marks
100
Accounting Grade 10 Exemplar Year-end Question Paper
ANSWER SHEET TO QUESTION 4
4.1 Brief explanation on the difference between fixed costs and
variable costs.
•
•
Variable costs: change in accordance with the scale of
business operations PP
Fixed costs: do not change in accordance with the scale of
business operations PP
Two examples of fixed costs:
wages, vehicle expenses, salaries, rent, etcP P
Two examples of variable costs:
Motor vehicle expenses, consumable stores, telephone &
electricity, etc. PP
Alternative wording acceptable.
(8)
4.2 Brief report for Victor.
Identification and explanation of issues from the budget:
• Gardeners given 5% increase in wages PPü
• Sales increased by 40% à increase in workload PPü
• Managers given 40% increase in salaries PPü
Two practical suggestions to solve the problem:
(any two üüü üüü)
•
•
•
Increase salaries and wages by a similar rate, not
necessarily 40%
Negotiate with gardeners
Consider introducing service benefits e.g. medical and
pension benefits
(15)
Accounting Grade 10 Exemplar Year-end Question Paper
4.3 Consider the bank balances at the end of 2005 and 2006. In your
opinion, is it wise for Victor to keep these amounts in the bank?
Provide one reason for your opinion as well as two options for the
treatment of the cash.
Opinion:
• Opinion: not wise üü
Reason
• Low interest rate on cheque accounts üü
Suggestions – any two PPü PPü:
• Invest in fixed deposit
• Take more drawings for personal use and enjoyment
• No need to provide so much extra capital
• Pay workers more
• Repay loan to save on interest expense
Alternative ideas and wording acceptable.
(10)
4.4 Three items in the cash budget that could have been
miscalculated with brief explanation of each item.
Possible answers:
• Advertising: for sales to increase they will probably have to
do more advertising
• Rent of office: no provision inflationary increase
• Consumable stores: increase by more than 40%
• Bank charges: no increase
0
1-2
3-4
5-6
7-8
9-10
No items identified or explained
Convincing/ fair explanation for 1 item identified
Fair explana-tions for two items identified
Convincing explana-tions for two items identified
Fair explana-tions for three items identified
Convincing explana-tions for three items identified
(10)
Accounting Grade 10 Exemplar Year-end Question Paper
4.5 Brief explanation to Peter Perkins, to help him understand that no
error has been made.
Possible answers:
Legal: Tax deduction PAYE & UIF are both legally required –
every person in the country pays this
Moral: Pension & Medical are added benefits to employees
provided by the employer to provide health and financial security –
this should be appreciated
0-2
3-4
5-6
7-8
9-10
Inadequate
explanation of deductions – legal & moral aspects not mentioned
Poor explanation of deductions – legal & moral aspects not emphasised
Satisfactory explanation of deductions – legal & moral aspects not emphasised
Good explanation of legal and moral aspects of deductions
Convincing explanation of legal and moral aspects of deductions
•
(10)
Peter is actually earning more than R6 000 per month. How
much extra is he actually earning, and why does he benefit in
this way?
UIF benefit = R60 üü
Medical aid benefit = R1000 üü
Pension benefit = R630 üü
Total extra benefit = R1 690
4.6 Your response to the employee with brief explanation.
(6)
Possible answers:
Victor must not agree
This would be illegal – Victor is not allowed to do this – he is
required to pay over PAYE deductions
Tax is a responsibility of every citizen – helps to make the country
a better place
If every person pays the correct amount due, the tax burden will
be shared fairly and taxes can be reduced, which benefits all
citizens
0
1-2
3-4
5-6
No valid explanation for decision
Satisfactory explanation of decision by Victor – understanding of ethical reasons for all
not pay tax not explicit
Good explanation of correct decision by Victor and the ethical reasons for all to pay tax
Accounting Grade 10 Exemplar Year-end Question Paper
(6)
Convincing explanation of correct decision by Victor and the ethical reasons for all to pay
tax
Accounting Grade 10 Exemplar Year-end Question Paper
RUBRIC TO QUESTION 4:
Difference
FC/VC &
examples
Unhappy
gardeners –
identify ethical
problem &
solutions
Three
miscalculations
– identify &
reasons
High bank
balances
- opinion
- reason for
opinion
- two options
0
1-2
3-4
5-6
7-8
No idea of
differences,
no valid
examples
provided
Some idea
either of
differences
or examples
Some idea
either of
differences
with poor
examples
Differences
identified
with two
examples
Differences
identified
with four
examples
0
1-3
4-6
7-9
No idea of
the ethical
problem nor
solutions
Some idea
of the
ethical
problem
with no
solution
Some idea of
the ethical
problem and
one solution
not entirely
practical
Identification
of the
ethical
problem and
solutions not
entirely
practical
0
1-2
3-4
5-6
10-12
Good
identification
of the
ethical
problem and
one
practical
solution
7-8
No items
identified
One item
and a
reason
identified
Two items
identified but
reasons not
appropriate
Two items
identified
but reasons
not entirely
valid
0
1-2
No opinion
nor options
Opinion
provided but
no reason
or valid
options
3-4
Opinion
provided with
either an
acceptable
reason or one
valid option
3-4
Poor
explanation of
deductions –
legal & moral
aspects not
emphasised
0
Explanation on
the difference
between gross
and net salary
No valid
explanation
0
Calculation of
extra benefits
from employer
Ethical
considerations
– all persons
to pay tax
without
exception and
reasons
therefore
No
appreciation
of any
amount
0
No valid
explanation
for decision
1-2
Inadequate
explanation
of
deductions
– legal &
moral
aspects not
mentioned
1
Appreciation
of one
amount
5-6
Opinion
clear with
acceptable
reason and
one valid
option
5-6
Satisfactory
explanation
of
deductions
– legal &
moral
aspects not
emphasised
Two items
and valid
reasons well
identified
7-8
Opinion
clear with
good reason
and two
valid options
7-8
Good
explanation
of legal and
moral
aspects of
deductions
Clear
identification
of the
ethical
problem and
two practical
solutions
9-10
Three items
and three
valid
reasons
well
identified
9-10
Opinion
clear with
excellent
reason and
two valid
options
9-10
Convincing
explanation
of legal and
moral
aspects of
deductions
SCORE
(10)
(15)
(10)
(10)
(10)
2
3
Appreciation
of two
amounts
Appreciation
of three
amounts
1-2
Satisfactory
explanation of
decision by
Victor –
understanding
of ethical
reasons for all
not pay tax
not explicit
9-10
Differences
excellently
identified
with four
excellent
examples
13-15
3-4
Good
explanation
of correct
decision by
Victor and
the ethical
reasons for
all to pay tax
Marks
65
Accounting Grade 10 Exemplar Year-end Question Paper
4
Full
appreciation
of amounts
of all for
benefits
5-6
Convincing
explanation
of correct
decision by
Victor and
the ethical
reasons for
all to pay
tax
(4)
(6)
SOLUTION TO QUESTION 5
5.1
CALCULATION OF FINANCIAL INDICATORS
ANSWERS
2005
COMPARISON
2004
PR
56,5 %
38,5 %
PR
129,6 %
62,5 %
350 / 270 x 100
P P
P
Operating expenses on sales
17,7 %
20,0 %
Operating profit on sales
38,7 %
18,5 %
Net profit on sales
5.1.3
Return on owner’s equity
Calculation:
37,0 %
13,8 %
PR
46 %
18,0 %
R
2:1
1,5 : 1
R
0,6 : 1
1:1
5.1.1
Gross profit on sales
Calculation:
350 / 620 x 100
P P
P
5.1.2
Gross profit on cost of sales
Calculation:
230 / 500 x 100
P
P
P
5.1.4
Current ratio
Calculation:
70 000 : 35 000
PP
PP
5.1.5
Acid-test ratio
Calculation:
20 000 : 35 000
PP
PP
(25)
Accounting Grade 10 Exemplar Year-end Question Paper
5.2
TRUSTY ACCOUNTING SERVICES
PO Box 456, Newlands, 7800
Tel: 021-3334678 Fax: 021-3334679 E-mail: trusty@mweb.co.za
30 October 2005
Mr B Baqwa
Private Bag 23
Ritesville
Western Cape
7812
Dear Mr Baqwa,
COMMENTS ON YOUR RESULTS
As requested, I have considered the financial performance of your business.
Your business is performing well in certain aspects, for example you have no
solvency problems, as the net worth of the business is R500 000.
However, I do have some concerns about the manner in which you are
conducting your business. My positive and negative comments are as follows:
Return on equity
• Trend in return 2004/2005 18 % à 46 %
PP
•
Compare to returns on alternative investments PP
•
Conclusion: return is very favourable PP
Learner communicates effectively P (impression)
Alternative wording acceptable
Liquidity
• Trend 2004/2005 in current ratio 1,5:1 à 2:1
(7)
P
•
Trend 2004/2005 in acid-test ratio 1:1 à 0,6:1
•
Identification of stock as a potential problem PP
•
Conclusion: possible liquidity problem PP
P
Learner communicates effectively P (impression)
Alternative wording acceptable
Accounting Grade 10 Exemplar Year-end Question Paper
(7)
Mark-up percentages
• Trend 2004/2005 62,5 % à 129,6 %
•
Conclusion: unreasonably high PP
•
Opinion: not fair to customers PP
PP
Learner communicates effectively P (impression)
Alternative wording acceptable
Operating efficiency
• Trend in op exps on sales 2004/2005 20 % à 17,7 %
•
Trend in op profit on sales 2004/2005 18,5 % à 38,7 %
•
Conclusion: controlling expenses well PP
(7)
PP
PP
Learner communicates effectively P (impression)
Alternative wording acceptable
(7)
Relationship with the community – ethical considerations
• Vitally necessary product PP
•
Monopoly - no competitors PP
•
Taking advantage of community ànot popular PP
•
Earning high profits and taking large drawings PP
•
He needs to apply a reasonable mark-up % PP
Learner communicates effectively PP (impression)
Alternative wording acceptable
(12)
I trust that you will find my comments helpful. Please contact me if there is any
other information you require.
Yours sincerely,
_______________
Marks
Signed on behalf of
Trusty Accounting Services
65
Accounting Grade 10 Exemplar Year-end Question Paper
RUBRIC TO QUESTION 5:
Calculation of
missing
indicators
Interpretation of
return on
equity: three
aspects:
- trends
- alternatives
- valid opinion
Interpretation of
liquidity ratios:
four aspects:
- trend CR
- trend ATR
- stock problem
- valid opinion
Interpretation of
mark-up
percentage:
three aspects:
- trend
- extent
- valid opinion
Interpretation of
operating %
three aspects:
- trend exps
- trend profit
- valid opinion
Identification of
ethical problem of
high medicine
prices: five
aspects:
- vital product
- monopoly
- high prices
- community
ethics
- advice
Overall
impression of
business letter
0
No
indicators
correctly
calculated
0
1-5
One
indicator
correctly
calculated
1
6-10
11-15
Three
indicators
correctly
calculated
3
16-20
Four
indicators
correctly
calculated
4
21-25
All five
indicators
correctly
calculated
5
Two indicators
correctly
calculated
No aspects
identified
One aspect
identified
Two aspects
identified, but
not
conclusively
Two aspects
well identified
All three
aspects
identified,
but not
conclusively
All three
aspects
well
identified
0
1
2
3
4
5
No aspects
identified
One aspect
identified
Two aspects
identified
Three aspects
identified
All four
aspects
identified,
but not
conclusively
All four
aspects
well
identified
0
1
2
3
4
5
Two aspects
identified, but
not
conclusively
Two aspects
well identified
All three
aspects
identified,
but not
conclusively
All three
aspects
well
identified
3
4
All three
aspects
identified,
but not
conclusively
10-12
All three
aspects
well
identified
2
No aspects
identified
One aspect
identified
0
1
2
No aspects
identified
One aspect
identified
Two aspects
identified, but
not
conclusively
Two aspects
identified
0
1-3
4-6
7-9
No aspects
identified
One aspect
identified,
little
understandi
ng of ethical
problem in
this case
Two aspects
identified, little
understanding
of ethical
problem in this
case
Three aspects
identified,
some
understanding
of ethical
problem in this
case
Four
aspects
identified,
good
understandi
ng of ethical
problem in
this case
All five
aspects
identified,
excellent
understandi
ng of ethical
problem in
this case
0
1
2
3
4
Inadequate
explanation
Partial /
poor
explanation
Adequate
explanation
Good
explanation
Good and
convincing
explanation
5
Excellent
and
convincing
explanation
Marks
65
Accounting Grade 10 Exemplar Year-end Question Paper
5
13-15
SCORE
SOLUTION TO QUESTION 6
6.1
TRADING STOCK ACCOUNT
General Ledger of Oscar Moloi
Dr
Trading Stock
ü
2006
March
1
Balance
b/d
3 520
Cr
2006
March
31
(880 ü +
1 320 ü)
üþ
ü
Cost of sales
ü
31
Creditors’ Control
ü
CJ
CRJ
2 200
ü
3 300
Cost of sales
üü
DJ
550
ü
Loss of stock
due to theft
þþ
176
GJ
ü
Advertising
üü
66
GJ
þ
Balance
6 820
c/d
3 828
þ
6 820
þ
April
1
Balance
b/d
3 828
(20)
6.2.1
Dangers of ordering too much stock (two points). üü üü
Lack of security of stock – susceptible to theft.
Working capital tied up in an asset which does not earn a
return.
(4)
6.2.2
Comment on stock on hand at the end of the month.
There is too much stock on hand. ü
He has 174 units on hand while he sells only 125 units during
the month. üü
Advice to Oscar regarding stock:
He should not purchase any stock right now. He should wait
until his current stock is almost depleted before re-ordering.
üüü
(6)
Accounting Grade 10 Exemplar Year-end Question Paper
6.3
Calculation of net profit
Sales = 3 366 ü + 1 188 ü = 4 554 ü
Cost of sales = 125 x 22 = 2 750 üü
Gross profit = 4 554 – 2 750 = 1 804
Overhead expenses = 80 ü + 66 ü + 176 ü = R322
Net profit = 1 804 – 322= R1 482üþ
6.4.1
Profit per reject T-shirt
Profit = R39,60 üü – R11 ü = R28,60 þ
6.4.2
(4)
Mark up on reject T-shirts
R28,60 þ / R11 üüx 100 ü = 260% þ
6.4.3
(10)
(5)
Advice regarding the plan concerning the plan to buy and
sell reject T-shirts
He should not go ahead with buying and selling rejected Tshirts.
It is unethical to sell inferior products at the same price as
other products. He will also find that his business will not be
sustainable if he sells these shirts at the normal price because
he will lose goodwill amongst his customers.
If he decides to buy rejected T-shirts, he should reduce the
selling price.
It could be a good idea to buy the rejected T-shirts but to sell it
at a price in relation to the cost price, since he has only sold
145
T-shirts during this month and has 174 T-shirts on hand. This
may mean that his target market cannot afford the quality Tshirt he is currently selling.
Awareness of ethical considerations - üüü
Valid advice üüü
Accounting Grade 10 Exemplar Year-end Question Paper
(6)
6.5
TRUSTY ACCOUNTING SERVICES
PO Box 456, Newlands, 7800
Tel: 021-3334678 Fax: 021-3334679 E-mail: trusty@mweb.co.za
2 April 2006
Mr O Moloi
Private Bag 23
DURBAN
7812
Dear Mr Moloi,
COMMENTS ON RUNNING YOUR BUSINESS TO INCREASE PROFITS
I have studied the current status of your business and would like to offer you
some advice on how to run your business in order to increase your profits.
Any 4 valid points üü üü üü üü
Alternative suggestions are acceptable. Possible points:
Trustworthy assistant
Extend the range of T-shirts sold to draw customers
Do research to determine what customers would like
Perhaps sell products other than T-shirts,
Security
Alternative supplier for better quality T-shirts
Advertising
Overall impression üü
(10)
I trust that you will find my comments helpful. Please contact me if there is any
other information you require.
Yours sincerely,
_______________
Marks
Signed on behalf of
Trusty Accounting Services
65
Accounting Grade 10 Exemplar Year-end Question Paper
Accounting Grade 10 Exemplar Year-end Question Paper